Hi! Thanks for being her. This time, I just need you to help me to develop more

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Hi! Thanks for being her. This time, I just need you to help me to develop more information! ( PLEASE: with extra information, don’t answer with the same as is in the papers). There is an overview of the company, and I just need to develop the risks that are numbered below the overview (put more information) and also recommendations that management can follow to overcome them! So:
1- help me put more information that you think for each of the 5 risks of the company. 2- help me to put recommendations to overcome them!
Please, give me all the information and knowledge you have! I really need you! I need to fill 5 pages with this info... help me. Thank you so much. I appreciate it and honor your knowledge School Corporation Analysis School Corporation is the largest multi-categorized company in the field of Children's Book Publishing, education, and national e International distribution. It was founded in 1920 in order to increase the dedication to study and gain more knowledge. This company has been doing very well in the United States where counts with more than 6,000 employees and internally with around 2,600 employees. Although it is a well-developed company in the educative industry reports show that it is not in a progressive statue due to its decreases and increases. Operating risk is defined as the risk of loss resulting from inadequate or failed internal processes, people and systems or from external events. The company has seen a reduced growth in sales in all the 3 major segments of the business, which can be initial signs of operating inefficiencies. Which could, in turn, result in Operating loss to the company. From the data collected, we can tell that the company is operating at a very low operating margin. Below is a table with an overview of the operating margin: In Billions $ 2018 2017 | change $Change % Revenue$1.63 $1.74 $0.11 1.62 7% 110% EPS -0.14 1.48 Hence for a change in 7% of revenue the earning per share has dropped by-11096 Companies have constant risks that can either help the company to grow or can take it to the ruin. For that reason, this research is to identify the key risks and challenges the School Corporation company faces going forward and find ways to overcome them and succeed. 1- If we fail to adapt to new purchasing patterns or trends, our business and financial results could be adversely affected. As the operating margins are very low for the company there are certain things that management should consider. First of all, the company can either raise the per unit price of the products or to reduce the inefficient cost and adapt new policies such as purchasing from a different cost- effective source, etc. 2- Changes in the mix of our major customers in our Trade distribution channel or in their purchasing patterns may affect the profitability of our trade publishing business and restrict our growth.

Explanation / Answer

1. Using activity based costing to eliminate the segments which require more activities but generate lesser revenues.

As the operating margins are low, the management should consider discontinuing those operations which require more efforts to be undertaken but generate lesser revenues. This would particularly result in increasing the operating margins and consequently the EPS. Further, performance improvement analysis must be undertaken to identify potentially inefficient operations and accordingly, measures such as automatization must be taken to improvise the same.

2. Undertaking customer mix analysis.

It is quite possible that there may be customers who require greater assistance and services which is not worth the revenue being generated from them. Such customers should be identified and efforts must be made to gain an increase in revenue from those customers particularly or alternatively, such customers may be discontinued. Focus must be on the customers which provide higher revenue with lower efforts. Pareto analysis may be useful in such cases.

3. Implementation of corporate strategy- an important function of mid-level management.

The mid-level management must ensure that the corporate strategies are properly implemented. If any ground-level difficulties and challenges are face, the same must be communicated to the top so that resolutions may be sought. Not just the challenges, also possible remedies or alternative strategies must be suggested. The top-level management should also be dynamic, proactive and willing to implement the suggestions.

4. Reduction in fixed operating costs.

Fixed costs have led to downfall of businesses multiple times in history. These costs need to be paid irrespective of the fact whether the business is generating revenue or not. Since the business is seeing decline in revenue, efforts must be made to reduce the fixed costs to decrease the burden and pressure from the business.

5. Failure to meet the demand of stakeholders-

Stakeholders include all the people who affect our business in some way or the other. May it be our suppliers, customers, government, regulators, shareholders, money-lenders- all these people, in some way or the other, determine and affect our policies. Hence, it is imperative that we always keep in mind the needs and requirements of our stakeholders. Analysing their needs and acting accordingly may lead to better business prospects leading to increased profitability.

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